Snyder's-Lance Posts 2Q Loss, Announces Acquisition
CHARLOTTE, N.C. (AP) — Snack food maker Snyder's-Lance Inc. posted a loss for its second quarter on Tuesday because of costs tied to the acquisition that combined the two companies. It also announced the acquisition of a distributor.
Lance Inc. and Snyder's of Hanover Inc. combined late last year in an all-stock deal. The new company took on the name Snyder's-Lance. Lance is known for its sandwich crackers, Cape Cod Potato Chips and Archway cookies, and Snyder's for its pretzels, Krunchers and Grande tortilla chips.
The company, based in Charlotte, N.C., reported a loss of $3.8 million, or 6 cents per share, for the quarter, compared with net income of $12.4 million, or 39 cents per share, in the same quarter last year.
After adjusting for merger, severance, impairment and other special charges including the conversion of its delivery system, the company earned 16 cents per share, compared with 44 cents per share last year.
The company's revenue rose to $412.5 million from $235.4 million.
Analysts polled by FactSet anticipated adjusted earnings of 17 cents per share on revenue of $408.4 million.
CEO David Singer said while the company's profitability was disappointing, Snyder's-Lance is on track to complete the integration of its merger.
Snyder's-Lance also announced Tuesday that it has acquired all the shares of George Greer Co. Inc., a snack food distributor in the Northeast, as it tries to expand its distribution network. The financial terms of the deal were not disclosed.
The company backed its full-year guidance, which it announced in July, for adjusted earnings of 75 to 90 cents per share. Analysts expect 84 cents.
Shares of the company fell 6 cents to $19.65 in midday trading.